A-LevelAccountingMarginal and Absorption CostingOct/Nov 2009Paper 1 Q291 Mark
In January, a business had opening stocks of 25 200 units and closing stocks of 28 200 units. The profit calculated on marginal costing principles was $100 800 and that calculated on absorption costing principles was $120 300. What was the fixed overhead absorption rate per unit?
A$4.00
B$4.27
C$6.17
D$6.50
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of marginal and absorption costing within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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